HG Infra shares gain 5% as Karnataka tax authority drops Rs 94-crore tax demand

H.G. Infra Engineering Ltd shares rose 5% on Tuesday after the company said the Deputy Commissioner of Commercial Taxes, Bengaluru, has dropped an entire demand of Rs 94 crore in a show-cause notice matter. The demand included tax, interest and penalty.

The company said the development relates to a show-cause notice issued by the Deputy Commissioner of Commercial Taxes, Bengaluru, on September 16, 2026. H.G. Infra had submitted its detailed reply to the notice and the matter was subsequently considered by the tax authority.

H.G. Infra Engineering shares touched a high of Rs 423.70, up 4.91% from the previous close of Rs 403.85.

Based on the company's reply to the show-cause notice, the Deputy Commissioner of Commercial Taxes issued an order on October 5, 2026, dropping the entire demand of Rs 94 crore. The order also closed the show-cause notice proceedings with NIL demand towards tax, interest and penalty.

The company disclosed the development under Regulations 30 and 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It said the information would also be hosted on its website.

The tax order brings the proceedings related to the show-cause notice to a close, with no amount payable by the company towards the tax, interest or penalty covered under the Rs 94 crore demand.

The company made the disclosure on October 6, 2026, and said the communication was being provided for information and record.

H.G. Infra Engineering Ltd (HGIEL) is an infrastructure development and engineering, procurement, and construction (EPC) company founded in 2003 and headquartered in Jaipur, Rajasthan